KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) on Wednesday cautioned that deteriorating security conditions in Karachi and persistent security challenges in the country’s western regions are weighing on investor confidence and business operations, despite improvements in some parts of the country.
According to the OICCI Security Survey 2026, conducted in June among leading foreign investors operating across Pakistan, the senior leadership of 71 per cent of respondent companies ranked security among their top three business concerns, underscoring that law and order remains a major impediment to investment and economic activity.
The survey showed that security perceptions in Karachi worsened compared with last year, with the proportion of respondents reporting a deteriorating security environment rising to 42 per cent from 41 per cent in 2025. Meanwhile, 81 per cent of respondents in Quetta and 86 per cent in the rest of Balochistan continued to report a worsening security situation.
Street crime remained the foremost concern for businesses, with 50 per cent of respondents reporting an increase in street crime in Karachi, up from 45 per cent last year. A similar trend was observed in Quetta, where the proportion of respondents reporting an increase in street crime rose to 37 per cent from 24 per cent in 2025.
Meanwhile, 32 per cent of respondents said security conditions affecting their businesses had deteriorated, up from 28 per cent last year. Concerns over employees’ personal safety during daily commutes also increased in Karachi, where 45 per cent reported worsening conditions compared with 41 per cent in 2025, and in Quetta, where the figure rose to 83 per cent from 79 per cent.
Commenting on the survey findings, OICCI Secretary General M. Abdul Aleem said: “The survey demonstrates the resilience and long-term commitment of foreign investors to Pakistan. However, sustaining investment momentum requires consistent improvements in public safety and law enforcement. Security should be viewed not merely as a law-and-order issue, but as a critical economic enabler. Reducing street crime, strengthening policing and ensuring a secure operating environment will directly enhance Pakistan’s competitiveness as an investment destination.”
Respondents also reported a decline in their assessment of civilian law enforcement agencies. Positive ratings for the Karachi Police fell to 30 per cent from 38 per cent last year, while ratings for the Sindh Police declined to 16 per cent from 26 per cent. By contrast, Sindh Rangers and KP Police recorded improved ratings, rising to 43 per cent from 34 per cent and to 40 per cent from 34 per cent, respectively.
Businesses continued to identify street crime, illegal gratification, expatriate security and protests as the principal law and order issues affecting business confidence. The survey also found that regional geopolitical developments have added to the security burden. Eighty-eight per cent of respondents said the Middle East conflict has affected their organisations’ security environment, with supply chain and logistics security (83 per cent), reduced business activity (69 per cent) and employee safety (38 per cent) emerging as the most significant concerns.
Despite these challenges, foreign investors have largely maintained their engagement with Pakistan, with 87 per cent of OICCI member companies expressing confidence in holding board and management meetings within the country, signalling continued faith in Pakistan’s long-term economic potential.
OICCI urged the government to sustain targeted security interventions, strengthen policing capacity and accelerate institutional reforms to provide businesses with a more predictable and secure operating environment.
